This post was originally published on this site
https://i-invdn-com.investing.com/trkd-images/LYNXMPEI5704W_L.jpg
The world’s second-biggest spirits group behind Diageo (LON:DGE), Pernod said it would aim to deliver annual organic sales growth at the upper end of a 4-7% growth range over the mid-term.
Pernod, whose brands include Martell cognac, Mumm champagne and Absolut vodka, reiterated it aimed to lift its operating profit margin by 50-60 basis points per year, provided it could deliver annual organic sales growth of 4-7% for the medium term.
Pricing will be a key, further enhanced by the use of data to predict customers’ habits and industry trends, it said.
Pernod Ricard also vowed to improve operational efficiency and keep advertising and promotional spending at 16% of sales.
Pernod Ricard holds a Capital Market Day later on Wednesday to detail its strategy.
“In today’s world and for many companies, the end goal is to leverage data. For us, at Pernod Ricard, the end goal is to spread conviviality…by leveraging data,” Chairman and Chief Executive Alexandre Ricard said in a statement.
In the year to June 30, 2021, Pernod Ricard delivered organic sales growth of 9.7% and lifted its operating profit margin by 213 bps buoyed by a rebound in demand for its high-end spirits in the United States and China in the aftermath of the COVID pandemic.
